Ahmedabad: Only about one in 10 SIP accounts in India has remained active for more than five years, even as the country’s overall SIP base continues to grow, industry data has shown. The number of SIP accounts that have continued over five years declined 11.2% year-on-year to 1.06 crore in March 2026 from 1.19 crore a year earlier. During the same period, the total number of SIP accounts increased by 3.9% to 10.45 crore from 10.05 crore. A similar trend was observed in Gujarat.Direct-plan SIP accounts recorded the sharpest decline, falling 34.7% to 17.55 lakh in March 2026 from 26.87 lakh. Regular-plan SIP accounts declined 4.4% to 88.44 lakh from 92.51 lakh.Parth Parekh, head of investor relations at a leading mutual fund distribution company, said the divergence suggests that investors managing their own portfolios are more likely to discontinue SIPs during when markets underperform.“A section of direct investors selects funds based on recent one- or three-year returns. When performance moderates, they either stop their SIPs or switch schemes,” he said, adding that investors working with distributors receive guidance on asset allocation, risk profiling and behavioural coaching that helps them stay invested through volatile markets.Mumukshu Desai, director of a financial advisory firm in Ahmedabad, said the trend does not indicate weakening interest in mutual funds, as the overall value of SIP investments continues to rise. Instead, it points to investors not sustaining SIPs beyond five years.Desai attributed the trend partly to the rapid adoption of do-it-yourself investment platforms, which have made mutual funds more accessible, particularly among younger investors. While these platforms have expanded participation, they also mean many investors take decisions without professional guidance, he said.According to Desai, younger investors are experiencing a prolonged phase of market volatility for the first time and are more prone to discontinuing SIPs or redeeming investments during corrections. He added that investors also frequently restructure portfolios by switching to better-performing schemes or newly launched funds, often reacting to short-term performance rather than long-term fundamentals.Industry participants say other factors such as cash-flow pressures, financial goals being met, mandate lapses and portfolio consolidation may also contribute to mature SIPs being discontinued.With SIP accounts older than five years accounting for just 10.1% of the country’s 10.45 crore SIP accounts, the data highlights the challenge of keeping investors committed through a full market cycle despite continued growth in SIP participation.
